Legal Question in Bankruptcy in California

No you do not need to be late. You do, however, need to include all of your debt with your bankruptcy. If you have no outstanding balance on a credit card you do not need to include that card in your schedules. But, the card will likely be cancelled anyways.

Lateness or currency isn't the rub; rather, it's the nature of the prepetition (before-filing) credit-activity (or inactivity): maintaining current minimum payments, yet charging in excess of those payments is not good form on "Bankruptcy Eve." Remaining current on payments pursuant to prior-cessation of new charges better conforms to honest debt-relief.

This answer (by San Diego bankruptcy attorney, Asaph Abrams) doesn�t address all facts & implications of the question; it�s general info, not legal advice to be relied upon. It creates no attorney-client relationship; it may be pertinent to CA and/or its Southern District Bankruptcy Court only, and it�s independent of other answers. Hire legal counsel before acting or refraining from bankruptcy/legal action.

As has been said, you do not need to be late on your payments. All you need to be is an honest debtor.

It is possible to keep a credit card and it may depend on the company (e.g. credit union vs Bank of America). Of course, it is easier to do this on a card with a zero balance. If you have a card in mind, you might want to call them and ask their policy if you file but want to keep the card. Depending on other circumstances including which chapter of bankruptcy you file, you may be given an opportunity to reaffirm the debt through the company.

Also, and perhaps surprisingly, you will get offers for credit - sooner than you think. There are even financing programs for bankruptcy debtors to buy new cars.

Good luck